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Sensitivity and scenario analysis Zhi is a risk analyst. She is conducting a sensitivity analysis to evaluate the riskiness of a new project that her

image text in transcribedSensitivity and scenario analysis

Zhi is a risk analyst. She is conducting a sensitivity analysis to evaluate the riskiness of a new project that her company is considering investing in. Her risk analysis report includes the sensitivity curve shown on the graph. This curve implies that the project is very sensitive to changes in units sold. The project's NPV is likely to become negative if the number of units sold decreases by

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